Considerations in Purchasing a Dental Practice

It is a very important that you give yourself due consideration in deciding where to buy, how to go about it, and what kind of practice to purchase.

Do Not Rush into This

Pace yourself. You are building the foundation of your future. Where do you want to live, how responsive will the community be to your new practice, how much of a rapport do you already have with the community?

Choosing the Best Location

Where is it that you would like to live? You’ll want to be a big part of this community, so you’ll need to make sure it’s a good fit. Dentists who involve themselves in community events and organizations are usually successful as they are meeting people and networking all the while. A short to medium commute is an important consideration. Avoid a long commute and you’ll have the opportunity to spend that time with friends and family. That’s not a bad trade off.

What sort of community is the right fit for you and your family? Suburbs? Intercity? Rural? Let the location of your competition inform your decision. Will your spouse be able to find work? Will your kids end up in a school district that will nurture them and grant you piece of mind?

Determine the Ideal Practice for You

Consider: size and type, Are you interested in specialized dentistry practice, or a generalized dental practice. Who is your competition and is there room for your particular niche? Create a thorough business plan.

Seek an Appraisal

Have the business appraised with the help of a certified public accountant or valuation specialist. A professional with experience in this industry is preferable. This way you’ll gain a better perspective.

Assemble a Team of Professionals

Trying to save money by being completely self-sufficient is a poor decision when you plan on purchasing a dental practice. There are many areas where you’ll need and benefit greatly from the expertise of others. In the long-run, investing in advisors will save you a lot of trouble. Here are a few people you’ll need:

• A CPA or accountant versed in aiding dentistry practices and other small businesses on remaining tax compliant and reducing tax burdens. You will want an accountant who can help you develop tax strategies. You’ll want a certified public accountant to advise you on how to structure your small business (S-Corp, C-Corp, LLC, PLLC, Sole Proprietorship).
• A Bookkeeper who has familiarity in a bookkeeping software system like Quickbooks. A certified Quickbooks Advisor is a title bestowed upon a bookkeeper which says the person is certified by the manufacturer of Quickbooks (Intuit Corporation) as competent with the bookkeeping platform.
• An attorney to review documents and legally protect your interests.
• A consultant for your new dental practice could prove useful in helping you meet goals.
• From the beginning, you should establish a relationship with a bank. Getting prequalified will help you gain a handle on how to put in a good offer and how much you can afford.
• Your insurance needs will increase ten-fold once you’re a business owner. An insurance rep will assess the value of your business and evaluate risk to see exactly how much coverage you will have to have.
• It is intelligent to seek the help of a mentor or business confidant of some kind, perhaps a veteran dentist who once went through the same process you’re going through now.
• A marketing pro that knows online marketing.

Prepare. Be a researcher. Trial and error is not a reasonable strategy.

Tax CPA John Huddleston is the author of the Self-employment Tax Guide which is a free resource for small business owners and the self employed for tax saving strategies and tax filing requirements. Mr. Huddleston has a law degree and masters in tax law from the University of Washington School of Law. He has been a guest tax expert on the radio. He advises small businesses in the Seattle Bellevue Tacoma & Everett area on various tax and accounting issues. His firm, Huddleston Tax CPAs, also provides tax preparation service, quickbooks consulting, business valuation, general accounting and bookkeeping service. Profile information on CPA John Huddleston and the CPAs employed by Huddleston Tax CPAs is available at the profile tab. Seattle CPA John Huddleston is a frequent publisher of tax saving ideas.